Supermarkets to lose some value in 2022
The Institute of Grocery Distribution (IGD) projects the market share for Singapore’s to shrink from the current 61% to 56.4% by 2022. With consumers working and cooking at home during the pandemic, the country’s grocery market grew four times faster in 2020 than a typical year. As more workers returned to work this year, demand for groceries is expected to come off its peak and taper back to more normal levels over the next year. The market is projected to post a negative growth rate over the next two years, at a compound annual growth rate of -1.5% from 2020 to 2022. Meanwhile, hypermarkets will maintain their 6.3% market share, convenience stores are expected to grow to 8% and online markets are expected to continue to grow from 6.5% in 2020 to 8.8% in 2022 as key retailors increase capacity and shoppers grow more familiar with the online channels.